Investment Thesis

Three to four point summary of the investment thesis highlighting the business opportunity

Company Overview

• What it sells: the type of products and services
• How it sells: sales channels, direct, wholesale retail, catalog, contracts with key customers, distribution, brokerage, payment, etc.
• Who it sells to: market segments, types of customers, geographies, etc.
• Why it sells: Describe the market opportunity and growth potential for the company
• Success stories: “timeline” of key events in the evolution or the history of the company

The strategy

• Describe the differentiating factors for why the company is unique (key success factors, patents, trademarks, top-of-mind, specific quality, access to suppliers, etc.)
• Name and status of key competitors and why the company is better or where the company can improve
• Total market size and the market share the company represents

The team

• Name of the founders, partners, key managers
• Who are they, their experience, and what each brings the company
• Total number of employees

The opportunity

• Provide summary of any strategic alliances
• Summary of funding sources (debt, equity, mezzanine, etc.) for capitalization
• Detailed table of sources and uses of funds
• Summary table of expected return to investors, IRR, valuation, etc.

The exit strategy

Describe the “exit strategy” (i.e. how investors will recover their money)

• Sale to a foreign / multinational group
• Repurchases by the original partners
• Accumulation of dividends
• Strategic sale to regional partner or competitor
• Sale to a company seeking vertical integration or diversification

Key information

Describe the “exit strategy” (i.e. how investors will recover their money)

• Financial (Three years of historical results if available and three years projected)
  • Income Statement: Revenue, Gross Profit, EBITDA, Net Income
  • Balance Sheet: Net Debt (Long term, short term, mortgage, etc.), Inventory, Accounts Receivable, and Accounts Payable
  • Cash Flow: Operations, Financing, Investments
• Operational: Units, productivity, number of employees, branches, stores, number of rooms, data relevant to the industry
• Note: Provide explanation of key assumptions and metrics

Contact

Address, telephone, and email contacts